Company Background
This report is a comprehensive marketing plan for Burlington Sporting Goods, located in Alamance County, NC. Burlington Sporting Goods (BSG) is Alamance County’s oldest sporting goods store. Since the store opened in October 1947, BSG has offered a wide variety of sport related products and services to the people of Burlington and Graham. Along with retail sporting goods and apparel, BSG offers corporate screen-printing for team uniforms, a basketball facility and an indoor batting facility. The batting facility features a completely enclosed 70' x 70' batting cage with nine token operated pitching machines. Additionally, BSG offers Nike SPARQ training and hosts birthday parties and summer camps for basketball, cheerleading and baseball. Mission Burlington Sporting Goods strives to foster mutually beneficial ties in Alamance County. Since we opened our doors in October 1947, Burlington Sporting Goods has provided the towns of Graham and Burlington with a wealth of services for all their athletic and sport needs. We're the oldest sporting goods store in Alamance County, and we take pride in providing Alamance County with our team-oriented and friendly staff (BSG, 2013). The following plan is designed to boost the financial success and brand equity of Burlington Sporting Goods in order to help the organization achieve and maintain its stated mission. It features an analysis of BSG’s current position within its market, an analysis of the organization’s target market, a statement of marketing goals and objectives, and a marketing mix with specific recommendations.

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SWOT Analysis
For years, the sporting goods market primarily consisted of small, family owned businesses, specializing in local communities and small market needs (Schmidt, 2013). Recently, the market has shifted in favor of national retailers with sizable market shares and buying power. This industry trend is easily relatable to Alamance County’s Burlington Sporting Goods (BSG) store which opened in 1947. In recent years, the company has been faced with expanding competition from national chains such as Dick’s Sporting Goods and Dunham’s Sports moving into the area. Within this competitive market, Burlington Sporting Goods must analyze its strengths, weaknesses, opportunities, and threats in order to maintain success in the region. STRENGTHS
 

WEAKNESSES
     

   

Wide variety of products Oldest sporting goods store in Alamance County - 1947 - long-term relationship with community and loyal customer base Alamance County’s only indoor batting facility Caters to local/small town needs Personal attention to customer needs Caters to all skill levels OPPORTUNITIES

Outdated logos, outdated website/lacks style & accessibility Only offer four sports Limited physical space for expansion Surrounding stores do not attract large volumes of shoppers Lack of a prominent online presence Store location discourages walk in/impulse shoppers THREATS

   

BSG has facilities available that could be used for a wide variety of activities BSG currently owns a blank billboard on I-40 near the store Sport participation and fitness awareness are on the rise Unlike online retail, BSG can offer face to face interaction

   



Dick’s Sporting Goods, Dunham Sports Omega Sports & Graham Sporting Goods - closer to Burlington schools Target/Wal-Mart offer convenience Teams increasingly use sports catalogs for wide variety of equipment and apparel Price - single largest basis of competition

Table 1. A breakdown of BSG’s Strengths, Weaknesses, Opportunities and Threats.
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Strengths Burlington Sporting Goods has a number of advantages within the Alamance County market. As Alamance County’s oldest sporting goods store, BSG has formed strong ties in the community and maintained a loyal customer base (C. Perry, personal communication, November 6, 2013). The store’s owner, Cheryl Perry, describes knowing many of her customers on a first name basis. She notes that many people expect frequent face to face service and that she spends a large portion of her time talking to customers in the store (C. Perry, personal communication, November 6, 2013). These types of intimate customer relationships set BSG apart from larger chain stores that do not have strong, personal ties in the community. BSG’s experience in the region has also helped them identify and respond to customer needs. For example, BSG recognized the most popular local sports in the region as baseball and cheerleading, and thus focused their business around these two (C. Perry, personal communication, November 6, 2013). They offer a variety of products and services, including silk screening & printing. Customers are able to create unique team logos and have their images printed on high quality uniforms. BSG also throws themed birthday parties centered on baseball, cheerleading and basketball. They run instructional baseball, cheerleading and basketball camps for all skill levels as well. Furthermore, BSG is home to Alamance County’s only indoor batting facility. They also have a multi-purpose facility with a basketball court and room for Nike SPARQ training and other athletic activities. Unlike other sporting goods stores in the region, BSG offers services beyond equipment retail. This feature strengthens their unique services and distinguishes them from others in the marketplace.

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Weaknesses Although BSG has entrenched itself in the Alamance County market, there is significant room for improvement in the company’s marketing, branding, and services. Overall, the company has shown weaknesses and is lacking in a number of areas regarding digital and online marketing. The company website is out of style and confusing at times. It also appears cluttered and lacks accessibility (See screenshot below). Furthermore, the website does not offer any means for online ordering. BSG has a Facebook page but it has only been viewed by 236 people and the company rarely makes posts or updates (https://www.facebook.com/burlingtonsportinggoods). An additional weakness that owner Cheryl Perry has identified is the segmentation between the store’s retail section and its facilities. She notes that customers shopping for sporting goods often come in the front door and never notice that BSG has facilities in the back. Conversely, many customers who come to use the batting cage use the back door and never see any of the merchandise for sale in the front. BSG also has limited space in some regards. The store’s basketball court is about ¾ the size of a standard court. Additionally, there is little room for BSG to expand their space due to the adjacent I-40. Therefore, it would be difficult for BSG to offer extended services and training for sports such as soccer, football, golf, and tennis, because these all require field space for practice. The store’s location, while convenient in some ways, also presents a number of weaknesses. BSG is located next to The Harley Davidson Store and a medical wellness center with little else in the immediate area. This is a possible deterrent for casual shoppers who do not come to BSG with a specific purpose in mind. It also damages BSG’s visibility as there are not many businesses surrounding the store to warrant consistent and heavy customer traffic.

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Picture 1. BSG’s website leaves something to be desired in terms of aesthetics and accessibility

Opportunities BSG has the opportunity to capitalize on their current weaknesses and turn them into strengths if they take the proper approach to fixing these shortcomings. In order to expand their services using the existing space they already have, they could offer group exercise classes and activities. This could be a great opportunity to target mothers to use the facility through yoga, zumba, pilates, etc. and also could draw them in to buy more products. Updates to the website and logo can attract more customers to BSG. There may be a large market to expand to hunting,

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fishing and camping goods and services to target local consumers. Health and fitness has become a recent trend across the country and therefore there is a rise in sports participation and equipment needs. There is an opportunity to build a rock climbing wall to expand services to customers. Threats Burlington Sporting Goods is subject to a number of threats within its market, Schmidt (2013) explains, that sporting goods stores “compete against other operators on the basis of price, product range, brands offered, customer service levels and store location”. For this reason, the industry has been moving towards national retailers (Schmidt, 2013). Stores such as Dick’s Sporting Goods, Dunhams Sports, Foot Locker and Omega Sports present major sources of competition in Alamance County. Target and Wal-Mart also offer similar products to BSG at low prices. Often these competing retailers have lower prices, wider product selection, and more convenient locations than BSG. Online ordering represents another major threat for the company. The sporting goods business has a heavy online ordering presence--something that BSG does not offer customers (Schmidt, 2013). Additionally, fads in the sporting industry can be hard to predict (Schmidt, 2013). Large retailers with larger inventories and cash flow may be better equipped to quickly respond to industry trends. Although we believe that BSG has a loyal customer base in the community, there will always be critics that did not have a good experience at a store. The only review of BSG on the Yellow Pages website, a well trusted directory, is a very disgruntled customer that had a negative experience at the store with customer service issues. This can have a lasting effect on BSG’s reputation since they cannot control what is said about their store on the internet.

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Market Analysis - Four C’s
Consumer Geographically, BSG’s potential consumers are primarily located in Alamance County, which encompasses the towns of Graham and Burlington. Without a strong online presence, and the prevalence of sporting goods stores throughout North Carolina, BSG can best sell its products within a relatively small geographic range. As of 2011, the population of Alamance County is 153,291—71% urban, 29% rural—with a gender breakdown of 58% female and 42% male. Of those employed in Alamance, 82% receive private wages or salaries, 12% work for the government, and 6% are self-employed (City Data, 2011). The median annual salary for workers in Alamance is around $42,000, though salaries in the county are subject to a fair level of variance (City Data, 2011). The county population is 67% Caucasian, 18.5% Black, 11% Hispanic, 1.2% Asian, and 1.4% other. The median resident age is 38, which is about one year older than the state median (City Data, 2011).

Picture 2. This map shows BSG’s (circled in red) target region. Items B-I show competing sporting goods retailers and recreational suppliers in the area.

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Demographically, the organization has a number of target segments. Families with children account for about 55% of the sporting goods market (First Research, 2005). This is an important demographic and target market for BSG. Youths aged 8-18 make up a significant portion of this market segment. The youth market continues to drive consumption of athletic footwear and is estimated to account for about 28.5% of total footwear purchases (Schmidt, 2013). The strong sales from this category may be attributed to two trends. First, because kids in this age group grow quickly, the rate at which footwear must be replaced is higher than in other age groups. Second, the youth market is very receptive to the marketing of new and trendy footwear; therefore, it demands the most recent athletic shoes (Schmidt, 2013). In analyzing the sporting goods market, it is useful to create segments based on two overarching criteria: Sports Participation and Consumer Type (Lebrun, Souchet, & Bouchet, 2013). Sports Participation: Individuals who participate in different sports require different equipment and have different world-views regarding sporting goods Baseball According to the NSGA 2003 report, for those 7 years of age and older, over 14.6 million people participated in Baseball. Of these 14.6 million, 4.5 million were aged 7-11 and 4.1 million were aged 12-17 According to the NSGA 2003 report, for those 7 years of age and older, over 14.6 million people participated in Baseball. Of these 14.6 million, 4.5 million were aged 7-11 and 4.1 million were aged 12-17 According to the NSGA 2003 report, for those 7 years of age and older, over 10.4 million people participated in Volleyball. Of these 10.4 million, 1.3 million were aged 7-11 and 3.4 million were aged 12-17

Softball

Volleyball

Basketball According to the NSGA 2003 report, for those 7 years of age and older, over 27.9 million people participated in Basketball. Of these 27.9 million, 6.3 million were aged 7-11 and 7.9 million were aged 12-17 Football According to the NSGA 2003 report, for those 7 years of age and older, over 8.7 million people participated in tackle Football and 9.3 million in touch Football

Figure 2. A breakdown sports participation according to the National Sporting Goods Association (BPlans, 2003).
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Consumer Type: This segment of the market consists of anyone who participates in athletics and buys equipment for themselves. This is an extremely diverse segment and consumers within it have diverse needs Parents Parents account for almost 90% of sporting goods purchases for individuals aged 5-18. The market is largely controlled by the decisions and discretionary income of parents Members and administrators within recreational leagues are responsible for uniform and equipment purchases. Customer loyalty plays an important role in this segment as teams will often use the same supplier year after year (Lebrun et al, 2013) Independent adult and AAU leagues have various equipment needs across many sports. As with league representatives, consumer loyalty is important within this segment Public and private middle and high school athletic directors must provide their athletes with uniforms and a variety of equipment. Establishing long term relationships within this segment is both difficult and lucrative (Lebrun et al, 2013). BSG has successfully established long term relationships with a number of Alamance County schools Organizations like these provide training and instruction for athletes. Accordingly they require various types of equipment. Selling to organizations like these may present a conflict of interest for BSG as they also provide athletic training along with selling equipment.

League Representatives

Independent Team Coaches School Athletic Coaches and Directors

Sports Performance Businesses

Figure 3. A breakdown of individuals who purchase sporting goods for reasons other than personal participation (Lebrun et al, 2013).

Climate High schools, middle schools, and recreational sports organizations represent important demographics for BSG. Sport teams within these segments have various equipment and uniform needs that BSG is able to fulfill. Sales of apparel and equipment to sporting teams are estimated to account for about 10.0% of the sporting goods market share (Schmidt, 2013). According to estimates, team sports are most popular among people 14 years old and younger, who account for nearly one-half of all team sports equipment purchases in the United States. Team sports
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purchases by people between the ages of 45 and 64 are estimated to account for the smallest share at only 5.0% (Schmidt, 2013).

Picture 3. This map shows the locations of high schools and middle schools within BSG’s geographic range.

Other household types, including singles, couples and the elderly, are estimated to account for about 30.0% of market share (Schmidt, 2013). Young singles and couples tend to have more leisure time to engage in sporting activities, and the elderly may engage in sporting activities to keep healthy to prolong life. These types of households are more likely to be involved in activities like hunting and golf, which are not family activities. The other main segment of this market is comprised of people between the ages of 45 and 64. The 45- to 64year-old age group is estimated to account for the second-largest proportion of sports footwear at about 21.0% (Schmidt, 2013). This reflects the aging of baby boomers and the rise in their sports participation rates, which promotes their footwear purchases.
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Figure 4. This graphic shows the market segmentation for sporting goods stores nationally.

Industry trends are heavily tied to the aging population in the US. As people age, they participate less in vigorous sports like running, basketball, and tennis, and more in relaxed sports like camping, fishing, and golf (First Research, 2005). From 2001-2010, participation in youth sports only grew 3%, while participation in athletics among people aged 45-55 grew almost 10% (First Research, 2005). Females are another important segment of the sporting goods market, accounting for the majority sport apparel purchases. Furthermore, female participation in sports has steadily increased in the past decade (First Research, 2005).

Competitors Operating a retail sporting goods store comes with many levels of competition. “In the U.S., about 20,000 companies operate retail sporting goods stores, with combined annual revenue of $25 billion (IBISworld.com).” There are many large format stores in the area such as Dick’s Sporting Goods, Graham Sporting Goods, and Dunhams Sports. There is also a segment of competition from mass merchandisers like Wal-Mart, Kmart, and Target, and by catalog and

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Internet retailers like Cabela's and L.L. Bean. While these stores sell a broad range of merchandise and some may have lower or the same price ranges, as a local store BSG can offer more than these “Big Box” stores with other benefits and value. Burlington Sporting Goods has more to offer than the other retail stores in the area through the batting center and training opportunities. Also part of the benefit received through shopping at BSG is how the store caters to the local schools and supplies students with products specifically designed with their school logo. Other competitors in the area are going to offer the same general products but shopping at BSG, a customer will be working with staff who is familiar with their specific needs and can improve their athletic performance at the same location they are purchasing all their athletic needs. Marketing Burlington Sporting Goods with a one stop shop kind of tactic could really help increase their customer base and loyalty from locals of Alamance County.

Company Internally, Burlington Sporting Goods is in a state of transition as they try to remain relevant in the Alamance County sporting goods market, after being relatively stagnant in the marketplace for the last couple years. They saw times of struggle during the economic recession when sporting goods sales decreased and the industry took a hit (C. Perry, personal communication, November 6, 2013). However, they have survived and are ready to make a full recovery and more. Within the last 3 months, BSG has hired a young, new employee to help improve upon BSG’s marketing strategy, bring fresh ideas to the company, as well as conduct training sessions. As a business, BSG is open to recommendations to improve any aspect of their brand and overall marketing efforts (C. Perry, personal communication, November 6, 2013).

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Goals and Objectives
Based on our SWOT analysis for Burlington Sporting Goods, we have formulated goals and objectives to improve the organization’s marketing. In order to achieve these aspirations, we will conduct a detailed analysis of BSG’s target market, consumer base, competitive strategies, and opportunities to expand. These goals and objectives are part of a marketing strategy to keep BSG competitive in an increasingly saturated market: Raise Awareness in Community:
   

Set up booths at community events and local sporting events. Sponsor local events. Utilize the advantages of word-of-mouth marketing. Increase awareness of the Batting center and training opportunities.

Become more involved in Community:
  

Cater to local community wants and needs. Capitalize on tournaments- teams traveling through the area. Partner with local schools and leagues to provide them with all their uniform, equipment, and apparel needs.

Build Unique Customer Experience:
    

Revitalize the Atmosphere. Have knowledgeable, personable staff that is interactive with customers. Adding a mentor element for youth training programs- High school Athletes, Elon Athletes, and Burlington Royals Players. Add a Membership Rewards Program Add an Online Purchasing Element that Keeps Record of Past Purchases and Membership Rewards.

Increase Digital Media Marketing Presence:
   

Promote Store through Social Media Marketing. Redesign Website. Increase Facebook User Activity. Web Advertisements on School and Community Sites.

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Target Market Analysis By looking at Alamance County and the demographics and psychographics of the area, we found that the most ideal target market for BSG would be families with children ranging from Kindergarten to High School that participate in sports, with a main focus on the younger athletes to establish a long-term customer relationship. Whether the children are involved in recreational sports or school sports, they will need a sporting goods store they can rely on for all their needs. In order to fulfill the needs of this target market we looked at how many schools were in the area, what sports were offered at these schools, what sports are played outside of schools and where they are played. With this background on our target market we can focus on the product offerings needed and benefits derived from BSG.

Middle & High School Sports Offered: Basketball Football Soccer Volleyball Softball Baseball Lacrosse Track & Field Cheer & Dance Golf Swimming Tennis

Rec League Youth Sports: Soccer Lacrosse T-ball Baseball Softball Flag Football Basketball Swimming Tennis Golf

Parks and Facilities: Broad Street Gym Burlington Tennis Center City Park Joe Davidson Park Fairchild Center & Park Maynard Aquatics Center Springwood Park YMCA

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Elementary schools (20): E. M. Holt Grove Park Harvey R. Newlin Highland Hillcrest Marvin B. Smith Alexander Wilson Altamahaw-Ossipee Audrey W. Garrett

B. Everett Jordan E. M. Yoder Eastlawn Elon Haw River North Graham Pleasant Grove R. Homer Andrews South Graham South Mebane Sylvan

Middle Schools (7): Turrentine Broadview Graham Hawfields Southern Alamance Western Alamance Woodlawn

High Schools (7): Walter M. Williams Eastern Alamance Graham Hugh M. Cummings Ray Street Academy Southern Alamance Western Alamance

In deciding our target market, we must be able to maximize potential benefits and value added for our desired customers (Narver, 1990). First, by looking at Alamance county with a population of 151,131 people and 39,848 family households we know that there is a potential market in the area. The store is centrally located in the county right off of I-85/ I-40 which runs directly through the middle of Alamance County providing easy access to those members living in the community as well as those passing through the area with children on their way to a tournament at one of the local parks. Looking at the area’s public education system allows us to see a range of ages and what sports these schools offer. We found twenty elementary schools, seven middle schools, and seven high schools. The middle and high schools offer a range of sports such as Basketball, Football, Soccer, Volleyball, Softball, Baseball, Lacrosse, Track & Field, Cheer & Dance, Golf, Swimming, and Tennis. Also offered are a number of leagues through the Parks & Recreation and YMCA, as well as independent traveling leagues in the area that offer athletic opportunities to all youth ages including Soccer, Lacrosse, T-ball, Baseball, Softball, Flag Football, Basketball, Swimming, Tennis, Golf, and Cheer & Dance. Knowing this information can give BSG an idea of what equipment and apparel is needed for the athletes living in Alamance County. As BSG offers a variety of products that are aligned with the needs of the target market, they also provide services for their customers creating opportunities to build
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their skills and athletic abilities through the batting center, and camps for basketball, baseball, volleyball, cheerleading, and sparq training. This element creates an added value for the customers coming into BSG (Narver, 1990, Brumbaugh, Grier, Aaker, 2002). The store can be seen as a one stop shop that helps build better athletes all around while providing them with any of their needs. BSG can capture the athletes through their brand name products and specialty services that include screen-printing for personalized gear and apparel. The store also provides its customers with reasonable pricing and a personable, knowledge based staff. Through their many attractive elements BSG should be able to hold a solid customer base. As a way to establish a long-term customer base the target market can be narrowed down to focus on the younger athletes and their parents. By attracting customers early on in their athletic involvement we can help guide them through the process of growing as an athlete, fitting them with the proper shoes, equipment, and apparel. Following these athletes as they grow and experiment with various sports, and helping build their skills or abilities through the camps and training facilities will allow us to have personal relationships with our customers. Catering specifically to our target market and establishing personal relationships creates loyalty to Burlington Sporting Goods and all it provides through products and services.

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Marketing Mix
Product Strategy Burlington Sporting Goods has proudly provided the Piedmont Triad area with sporting goods for over 60 years. Originally, BSG began as a sporting goods store, supplying players and teams with uniforms, apparel, equipment, and accessories. However, when they moved locations, they added onto the building, expanding to offer training facilities for basketball, baseball, and other sports, thus enhancing the opportunities for customers to improve their skills. BSG also offers special team camps and training sessions, as well as birthday party celebrations. This combination of sporting goods store and training facility offers a unique experience for all ages. This unique experience is the core product that BSG strives to sell. Every athlete starts somewhere, whether it's at the local YMCA or your middle school baseball field. After signing up for a team, it is important that you have the proper apparel and equipment before the first practice begins. This is an exciting time for any child or adult. They are not just simply shopping for a new baseball bat, but rather they are shopping for the bat that hopefully give them the extra boost in performance so he or she scores the winning run. Burlington Sporting Goods is one of the first experiences that a consumer encounters once their decision has been made to join the team. Beyond a sporting goods store, Burlington Sporting Goods also provides a training center, a basketball court, 9 batting cages, bullpen, and skill stations, for those customers striving to excel. This unique experience connects two products, apparel and equipment, and training facility, to enhance the overall customer satisfaction. If the boy had gone to any other sporting goods store nearby Burlington to buy his bat, he would not have been able to test out his bat in the batting cage in the back of the store. At BSG the boy can demo a variety of bats before deciding which one satisfies his needs. This makes
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BSG unique in that a customer can test his or her performance with the equipment before buying it since it is also a training facility. As he checks out, he can also sign up for a training session, sports camp, or have a birthday party at BSG. As the boy picks his new bat and tries it out, his mom can shop in the store and pick out a t-shirt and/or design personal fan apparel to wear while cheering on the sidelines. BSG offers silk screening t-shirts for corporate screen printing, team uniforms and team gear. This is also a unique feature of the sporting goods store that no one else offers nearby. Another competitive advantage we have over the larger sporting goods stores nearby is the exemplary customer service we provide. Being that BSG has been a local store for over 60 years, its employees have formed lasting relationships with customers, making the in store experience personal. When known, employees welcome customers to the store by name, and if not, still are overly inviting towards new customers. Customer service strengthens the associations that people form after a positive experience and can influence later decisions to continue using that product. BSG is also community focused, catering to local schools sporting needs, outfitting team uniforms, game day t-shirts, and team sweatshirts. Recommendations One aspect that can be improved upon in the future for BSG is to clearly identify major areas around the store so the customer can more easily navigate through the store. By having signs saying “Men’s Apparel”, “Women’s Apparel”, “Youth Equipment”, “Youth Footwear”, etc. it will be easier for customers to understand the layout. A prominent and obvious sign indicating the batting cage and basketball court will also help customers navigate the store and increase awareness for BSG’s services.

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It is essential for BSG to enhance its digital presence in order to remain relevant in the minds of its customers. The company is currently in the process of redesigning its website (C. Perry, personal communication, November 6, 2013). To improve the website, we recommend a stronger focus on images throughout the site. Specifically, it will help to rely more on images rather than text on the home page. This will help establish more personality for the site and give first time visitors a stronger initial impression. Additionally, we recommend adding an online ordering component to the site along with more detailed information on BSG’s in-store product offerings. Along with this recommendation, we suggest an online integration with the All Star Membership Rewards Card outlined above. Through this, customers could sign up for a rewards card online or in the store and likewise could receive benefits for both online and in-store purchases. We also recommend that BSG become more active on its Facebook page. The company’s current Facebook page has 236 views and made frequent posts throughout the month of October (BSG Facebook, 2013). However, in recent months the page has become significantly less active. We suggest that BSG maintain consistent activity on its Facebook page by making posts about all of its promotions and sales, arrival of new inventory, and updates on participation at the store’s facilities. Another recommendation to enhance the products available to customers at BSG would be to implement yoga classes or Insanity classes taught in the basketball gym. This would be a great way to encourage parents to become more active and healthy and they can do so during their child’s batting practice, so they do not have to go to another gym during their wait for their child. This adds to the convenience that the store can appeal to more than just the kids. This is a great way for the entire family to get involved at BSG and gets families in the store more frequently.

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Pricing Strategy Products Approximately half of Burlington Sporting Goods consists of sporting goods retail, while the other half is service and facility based. BSG differentiates itself from its competitors by its special team deals, bulk order discounts, and sales. However, in the face of major chain competitors it is difficult for BSG to price much of its inventory below industry standards. One of the most important retail goals for BSG is to maintain a high inventory turnover. Thus far, eBay has emerged as an effective means for the store to sell some of its older inventory. A stronger online presence will help BSG maintain inventory turnover. This can be established via the company’s revamped website (See recommendations below). Adding more inexpensive items to the store’s inventory may be beneficial as well. A parent bringing their children to use the batting cage is not likely to casually purchase a $150 bat. They may, however, be willing to shop for items in the $5-$15 range while they wait for their child. BSG will struggle if the organization competes solely based on superior price and selection for high end retail items (things like shoes and baseball bats). There is an opportunity, however, for the store to sell its more expensive inventory by relying on top notch customer service and consumer loyalty. In this sense, BSG must integrate its services and all of its product offerings to establish a streamlined customer experience. Currently, the store’s customer base is largely segmented where some customers use the store for its batting cage, others use the store for their silk screening needs, and others to purchase retail sporting goods. We have developed a recommendation for a BSG Membership Rewards Card called the BSG All Star Membership Rewards Card that will incentivize customers to consume BSG products and services in a variety of ways (see recommendations below).

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Services BSG is distinguishable from nearby competitors in that it is the only sporting goods store that contains a basketball court, batting cage, and bull pen. BSG also offers private lessons and camps and rents out its facilities, setting it apart from competitors that do not offer such amenities. The facility based service side of BSG has an opportunity to thrive in the community through competitive pricing. In determining the prices for the services, it is important to consider the maintenance costs incurred to run any event in the facility. Products should be priced accordingly to recover some or all of the costs incurred in running the event. We must also think about how much BSG must pay its employees to run such events when pricing the product and experience. Currently, the most important objective for BSG is to build awareness among families with young children. Tapping into this market will help establish a customer base that will continue to use BSG’s products and services for years to come. With this in mind, BSG should launch a marketing campaign in which the price for services is heavily discounted in the short term. Getting people in the door is the most important factor here. The biggest struggle for the store is not its lack of offerings or its price; it is primarily a lack of awareness. Through the use of strategic advertising, BSG can offer “the best deal in town” for parents to entertain their children for the day in order get people to the store. If families have a good experience their first time they will be more willing to pay a higher price for subsequent visits. Recommendations To an extent, BSG struggles from a poorly defined identity within its markets. Rather than competing on three totally segmented fronts (sporting goods, silk screening, and athletic

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recreation), BSG must establish a well-defined and streamlined experience that helps create a clear identity in the minds of its customers. All Star Membership Rewards Card: The BSG All Star Card is a free membership for customers that provide them with rewards over time. Customers can sign up for a card for free by answering a few survey questions and providing information such as their address, email address and phone number. Each time members make a purchase or use a BSG facility, they receive points that can be redeemed for discounts for both retail items and facility use. Customers can accumulate points for online purchases as well.

This is a standard marketing tool across many retail industries (Duffy, 1998) used to connect with and gather information on customers. In the case of BSG, this strategy could be especially useful. The Membership Rewards Card would allow BSG to collect information on their customers. More importantly, it could provide a bridge between the store’s retail and its

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facilities. Due to the variety of reward options, casual customers are incentivized to expand how they consume BSG’s products and services. For example, each dollar spent at BSG nets a customer 5 points on his or her All Star Membership Rewards Card.

The following outlines potential rewards for members as they accumulate points:

Point Mile Stone 500 Points

Reward 10% off any purchase or facility use (max purchase $200)

1200 Points $10 off any purchase or facility use ($10 minimum) and your choice of one free screen printing (limit one shirt) or 9 free tokens at the batting cage 2000 Points 2 free hours of BSG athletic training (redeemable for classes and batting training) or 20% off any purchase (max purchase $200) Figure 5. Potential customer rewards via the BSG All Star Membership Rewards Card

We also recommend that BSG offers inexpensive items ranging from $2 to $20 and display them near the batting facility. The idea behind this is to provide parents an outlet for casual shopping while their children are using the batting facilities. People within this group are at the store to supervise children and may not have any intention to make a significant purchase. However, they have committed to spending time within the store and thus should be treated as target consumers. Inexpensive accessories, novelty items, and apparel can generate additional sales by appealing to this group.

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Distribution Strategy The Burlington Sporting Goods store is located directly off of I-40 and I-85 in Alamance County. Being only a half a mile off the interstate, BSG sees many customers just stopping in off the road. It is also easily accessible for local residents to get to, only 3 miles from downtown Burlington. BSG is conveniently located off of Maple Avenue, a road that parallels E Webb Road and directly goes into downtown Burlington. BSG has 7 schools (elementary, middle, & high) within a three mile radius of the store, they are: Walter M. Williams High School, Burlington Christian Academy, Alamance Community College, Turrentine Middle School, Harvey R. Newlin Elementary School, River Mill Academy, and Graham Middle School. This is important because there is likely heavy local traffic passing by BSG on a fairly regular basis. For example, if a mom is picking up her son from school and they realize he needs a new bat before tomorrows practice, they will hopefully come to our store because of its accessibility and personal service. With our prime location, we hope that customers think to come by our store for convenience and confidence in knowing that BSG carries what they will need. There are also over 15 parks and recreation areas within 5 miles of BSG. The Burlington Royals, a minor league affiliate to the Kansas City Royals, is only 3 miles away from BSG. This could be important because many families in the Burlington area have a memory of going to a minor league game there and may associate BSG as the nearby baseball retailer and training facility to the stadium. Recommendations As a suggestion, it would be beneficial to revamp the signage leading customers to the store. This is an extension point that can greatly affect a consumer’s experience. If a customer has trouble finding their way to the store, there is a good chance that he or she will not be as

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happy as they would have been if it was effortless to get to. When getting off of Exit 145 and on Maple Avenue briefly, there are no visible signs telling the customer to turn at Hanford Road. Furthermore, BSG is on Hanford Road, which is a small U-shaped road with a couple of businesses on the outside and a field in the center of the circle. There is also a new Harley Davidson store that was built next door to BSG and may attract attention away from BSG because it is more aesthetically pleasing. With better signage on the main road, Maple Ave., BSG will hopefully increase sales. Also, opening up the store front so it is more inviting and transparent with the consumers may enhance the customer’s satisfaction when visiting the store. Currently, the exterior of BSG is outdated and dull - mainly a concrete structure. Adding larger windows to the front of the store would allow for more natural light inside the store and is more attractive from the outside.

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An issue that the owner of BSG said they have trouble with is that some customers do not know that the basketball court and batting center is behind the store, while other customers do not know that the store exists since they only use the batting center or basketball court. With a little redesign of the interior, BSG could make the back merchandise wall somewhat transparent to the basketball court by using a part/half glass wall separating the two areas of the business. This would bring curiosity to the customers to want to learn more about the other side of the building. This change would help spread the awareness that it is not just a retail store, but also a training facility, and vice versa. Another suggestion would be to add one or two TV’s to the batting center area so parents can be entertained while waiting for their kids. With TV’s in the sitting area, parents wouldn’t miss the important sports game or news story that overlaps with their time at BSG, and also wouldn’t have to go somewhere else to watch it. This also keeps the parents in the store longer and more likely to purchase something. Another great way for BSG to interact with the customer through place would be to utilize the billboard space they own outside of the store and right on the highway. BSG was using this as a marketing tool, but when the economic recession hit, the billboards were an easy thing to cut from the budget. Below, we will offer a suggested billboard for BSG to use.

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Billboards are usually just cluttered messages people drive by without really remembering the message. However, the billboard we propose does this. It is not your average billboard. Notice the baseball player is larger than the billboard space actually is, making it more apparent and attention-catching than a regular billboard. The player is swinging a baseball bat, and if you follow the line of the bat you can clearly see a baseball (sign) on the top of Burlington Sporting Goods store. Along with the baseball action on the billboard, the message on the billboard reads: “When you’re ready to hit your first home run... come see us - Burlington Sporting Goods & Training Facility.” This will hopefully spark interest and a conversation for people driving by to want to go visit the sporting goods store & training facility, today or one day soon.

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Promotion Strategy One of BSG’s top priorities right now should be to reconstruct the online website. It is currently cluttered and difficult to navigate as a consumer. Some things are able to be clicked on, but many others are not. It is outdated and confusing and does not offer any online shopping feature or online ordering for silk screening. These are features that should be up to date in order to stay competitive in the marketplace. Convenience is key in people’s crazy lives today. The new website needs to be clean and easily accessible. People do not want to call in and bulk order uniforms and going into the store could take a long time. People need the convenience and confidence in online ordering to easy the ordering process. This can greatly improve BSG’s efficiency in their bulk ordering process, as well allows for more personable service in the store. Recommendations Although BSG currently offers sales and team discounts, bulk ordering discounts & team camp discounts, it is not likely to retain the customer base needed to survive the growing competition in the sporting goods industry in Alamance County. In order to build a stronger customer base and increase awareness of the facilities BSG offers, they should offer ‘free’ or heavily discounted days for people to come in and use the batting center, basketball court, and or SPARQ training. Currently, one of the stores biggest struggles is a lack of awareness in the surrounding area. By offering ‘free’ or heavily discounted training days, first time customers are more likely to come in and try the facility paying less than usual. This promotion would get families in BSG’s door and hopefully they will come back and pay full price at a later date. Another great promotional tactic BSG could use to target young families would be to give local youth sports coaches “Home Run Card” coupon (and other appropriate names for other sports), which are given to children who score a run or score a goal in a game, and are given a 10%

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discount to either the BSG store or the training facility - as a congratulations. This not only gets the child excited about recognition from a sports store for their success, but also gets he or she excited about redeeming a reward and/or more training. The 10% discount encourages the family to buy from BSG rather than a large retail sporting goods store, hopefully establishing a relationship during their experience at BSG, because they feel like they are saving with the discounts.

BSG should be proactive in their sales and promotional approach, setting up booths and tents at all community sporting events and gatherings and offering appropriate gear and apparel aligning with the event. By setting up in the parking lot by the soccer fields, it brings the store to the game and is convenient if the boy forgot his shin guards. Not only should they have the tents or booths at youth events, but also high school sporting events where fans may want to buy a high school t-shirt or sweatshirt. Also, by setting up at registration tables before leagues begin, a booth offers a one stop shop for families, where they can sign up for a sport and buy the

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appropriate gear and equipment their child will need. This eliminates potential hassle of bringing a family of kids to a store. There are also many opportunities for BSG to reach the public and potential customers through public relations. Press releases are an easy way to raise public awareness about the uniqueness of your company. Also, BSG should be featured in weekly ads in the newspaper during sporting seasons as well as local school newspapers and yearbooks. The Burlington Times News has a “Special Section” that provides readers with over fifty annual guides on all aspects of life in Burlington. These guides offer spaces for advertisements and some of which would be beneficial for BSG to place an advertisement in to promote their unique products. BSG should do so in the “High School Football Preview”, “Alamance Health 2013” and “Summer Camp Guide 2013” because they are all relevant to BSG’s mission and vision to provide sporting goods equipment and training services to the surrounding communities.

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References

BPlans (2003). Sporting goods retail business plan. Retrieved from http://www.bplans.com/sporting_goods_retail_store_business_plan/market _analysis_summary_fc.php#.Uk7S0FPYCSo Brumbaugh, Anne M., Grier, Sonya A., & Aaker, Jennifer. (2002). Nontarget Markets and Viewer Distinctiveness: The Impact of Target Marketing on Advertising Attitudes. Stanford University Graduate School of Business Research Paper No. 1578. Journal of Consumer Psychology. Vol. 9, No. 3, pp. 127-140. City Data (2011). Alamance county nc. Retrieved from http://www.citydata.com/county/Alamance_County-NC.html First Research (2005). Sporting goods retailers. First Research Industry Profile. Retrieved October 1, 2013 from Ebscohost database. Lebrun, A., Souchet, L., & Bouchet, P. (2013). Social representations and brand positioning in the sporting goods market. European Sport Management Quarterly 13(3). Narver, John C. and Stanley F. Slater. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing. Vol. 54, No. 4, pp. 20-35. Schmidt, D. (2013). Sporting goods stores in the US. IBISWorld Industry Report 45111. Retrieved from http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=1079 Duffy, Dennis L.(1998). Customer Loyalty Strategies. Journal of Consumer Marketing. Vol. 15, No. 5, pp. 435-448.

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